A time-of-use pricing model of the electricity market considering system flexibility
This paper presents a time-of-use (TOU) pricing model of the electricity market that can capture the interaction between power plants, generation ramping, storage devices, electric vehicle loading, and electricity prices. Even though the model is calibrated to Chinese Fujian electricity market, it c...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-11-01
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| Series: | Energy Reports |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2352484721014657 |
| _version_ | 1797902106812743680 |
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| author | Presley K. Wesseh, Jr. Boqiang Lin |
| author_facet | Presley K. Wesseh, Jr. Boqiang Lin |
| author_sort | Presley K. Wesseh, Jr. |
| collection | DOAJ |
| description | This paper presents a time-of-use (TOU) pricing model of the electricity market that can capture the interaction between power plants, generation ramping, storage devices, electric vehicle loading, and electricity prices. Even though the model is calibrated to Chinese Fujian electricity market, it can be used to predict efficient equilibrium tariffs on any electricity system that seeks to emphasize the marginal costs principle for generators where consumer tariffs are regulated. We show that, for efficiency purposes, it is imperative for dynamic electricity pricing models to take into account technology-specific ramping parameters and various sources of power system flexibility. Also, by utilizing unused battery capacity, electric vehicles can significantly complement other storage devices to reduce power sector emissions and ensure grid stability. The model and results presented in this paper are useful to regulatory bodies in Fujian province for economic policy, and to the scientific community in terms of (i) offering a tool to promote more discussion on dynamic pricing in electricity markets, and (ii) enriching our understanding of how to design a TOU program in the light of flexible power resources. |
| first_indexed | 2024-04-10T09:12:33Z |
| format | Article |
| id | doaj.art-d234db678965419887b3018b028e9ad3 |
| institution | Directory Open Access Journal |
| issn | 2352-4847 |
| language | English |
| last_indexed | 2024-04-10T09:12:33Z |
| publishDate | 2022-11-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Energy Reports |
| spelling | doaj.art-d234db678965419887b3018b028e9ad32023-02-21T05:09:50ZengElsevierEnergy Reports2352-48472022-11-01814571470A time-of-use pricing model of the electricity market considering system flexibilityPresley K. Wesseh, Jr.0Boqiang Lin1School of Management, China institute for Studies in Energy Policy, Xiamen University, Fujian, 361005, PR ChinaSchool of Management, China institute for Studies in Energy Policy, Xiamen University, Fujian, 361005, PR China; Innovation Laboratory for Sciences and Technologies of Energy Materials of Fujian Province (IKKEM), Xiamen, Fujian 361101, PR China; Corresponding author.This paper presents a time-of-use (TOU) pricing model of the electricity market that can capture the interaction between power plants, generation ramping, storage devices, electric vehicle loading, and electricity prices. Even though the model is calibrated to Chinese Fujian electricity market, it can be used to predict efficient equilibrium tariffs on any electricity system that seeks to emphasize the marginal costs principle for generators where consumer tariffs are regulated. We show that, for efficiency purposes, it is imperative for dynamic electricity pricing models to take into account technology-specific ramping parameters and various sources of power system flexibility. Also, by utilizing unused battery capacity, electric vehicles can significantly complement other storage devices to reduce power sector emissions and ensure grid stability. The model and results presented in this paper are useful to regulatory bodies in Fujian province for economic policy, and to the scientific community in terms of (i) offering a tool to promote more discussion on dynamic pricing in electricity markets, and (ii) enriching our understanding of how to design a TOU program in the light of flexible power resources.http://www.sciencedirect.com/science/article/pii/S2352484721014657Time-of-use pricingGeneration rampingStorage devicesElectric vehicle loadingWelfare |
| spellingShingle | Presley K. Wesseh, Jr. Boqiang Lin A time-of-use pricing model of the electricity market considering system flexibility Energy Reports Time-of-use pricing Generation ramping Storage devices Electric vehicle loading Welfare |
| title | A time-of-use pricing model of the electricity market considering system flexibility |
| title_full | A time-of-use pricing model of the electricity market considering system flexibility |
| title_fullStr | A time-of-use pricing model of the electricity market considering system flexibility |
| title_full_unstemmed | A time-of-use pricing model of the electricity market considering system flexibility |
| title_short | A time-of-use pricing model of the electricity market considering system flexibility |
| title_sort | time of use pricing model of the electricity market considering system flexibility |
| topic | Time-of-use pricing Generation ramping Storage devices Electric vehicle loading Welfare |
| url | http://www.sciencedirect.com/science/article/pii/S2352484721014657 |
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